Investors might want to bet on Kemper (KMPR) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual invest ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuati ...

For the quarter ended March 2025, Kemper (KMPR) reported revenue of $1.19 billion, up 5% over the same period last year. EPS came in at $1.65, compared to $1.07 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.23 billion, representing a surprise of -3.56%. The company delivered an EPS surprise of +11.49%, with the consensus EPS estimate being $1.48.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectati ...

Kemper (KMPR) came out with quarterly earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.48 per share. This compares to earnings of $1.07 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 11.49%. A quarter ago, it was expected that this insurance holding company would post earnings of $1.38 per share when it actually produced earnings of $1.78, delivering a surprise of 28.99%.Over the last four quarters, the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________________________________________________ FORM 10-Q ______________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended 3/31/2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from to Commission file number 001-18298 ____________________________ ...

Investor Supplement First Quarter 2025 Caution Regarding Forward-Looking Statements This Investor Supplement may contain or incorporate by reference information that includes or is based on forward- looking statements within the meaning of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Such statements involve known and unknown ris ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a me ...

Company Overview - Kemper is an insurance holding company based in Chicago, operating in the Finance sector, with shares experiencing a price change of -13.1% this year [3] - The company currently pays a dividend of $0.32 per share, resulting in a dividend yield of 2.22%, which is higher than the Insurance - Multi line industry's yield of 1.56% and the S&P 500's yield of 1.73% [3] Dividend Analysis - Kemper's annualized dividend of $1.28 has increased by 3.2% from the previous year, with two dividend increases over the last five years, averaging an annual increase of 0.63% [4] - The company's current payout ratio is 21%, indicating that it pays out 21% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for Kemper's earnings in 2025 is projected at $6.03 per share, reflecting a year-over-year growth rate of 2.38% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages, although not all companies offer dividends [6] - Kemper is identified as a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]

Regulatory Environment - Kemper's insurance operations are primarily regulated at the state level, affecting policy forms, rate setting, and claims handling practices [83]. - The company anticipates a continuing focus on new regulatory and legislative proposals at state and federal levels regarding privacy and security of personal information [90]. - Kemper's insurance subsidiaries are required to pay assessments to fund policyholder losses or liabilities of insolvent insurance companies under guaranty fund laws in most states [87]. - The company faces risks related to increased costs and potential liabilities from evolving regulatory policies and adverse legal outcomes [26]. - Kemper's ability to address market developments can be adversely impacted by lengthy delays in the approval process for policy rates and forms [84]. - The company is subject to numerous federal and state laws imposing significant requirements for protecting personal and confidential information [88]. - Kemper's insurance subsidiaries must maintain a cybersecurity program and incident response plan under extensive regulations [90]. - New state regulations expand oversight and reporting requirements for insurance holding companies, impacting enterprise risk assessments [96]. - The Dodd-Frank Act established the Federal Insurance Office to monitor the insurance industry and may influence business operations and financial reporting [97]. - Control of insurance companies is presumed with ownership of 10% or more of voting securities in most states, and 5% in Alabama, requiring prior regulatory approval for acquisitions [94]. Financial Strategy - Kemper's total capital held by domestic insurance subsidiaries exceeded the minimum levels required under applicable Risk-Based Capital (RBC) requirements as of December 31, 2024 [86]. - The company employs a total return investment strategy with an emphasis on yield while maintaining liquidity to meet short- and medium-term insurance obligations [81]. - Kemper relies on dividends from its insurance subsidiaries to meet obligations, with regulatory approval required for certain distributions [92]. - The company cannot guarantee that forward-looking statements will be achieved due to various risks and uncertainties [22]. Employee Engagement and Culture - Kemper emphasizes a culture of ownership among employees, driving high performance and accountability [100]. - Employee engagement is measured through surveys focusing on career growth, leadership, and workplace culture [109]. - Kemper offers a comprehensive total rewards package, including health insurance, retirement savings, and employee development programs [110]. - The company promotes a hybrid work model to enhance flexibility and maintain community engagement among employees [113]. - Regular town hall meetings are held to keep employees informed about key initiatives and celebrate achievements [114]. - Kemper is committed to fostering an inclusive environment that values diverse perspectives and supports employee growth [102].

Financial Data and Key Metrics Changes - For the year, the company reported net income of $318 million, with a fourth-quarter net income of $97 million [16] - The return on equity for the year was 11.9%, with an adjusted return on equity of 18.3% [21] - The company achieved a strong underlying combined ratio of 91.5% for both the year and the fourth quarter [17] Business Line Data and Key Metrics Changes - The specialty auto business had an underlying combined ratio of 91.7% and generated $101 million of adjusted net operating income [22] - The Life segment delivered $24 million of adjusted net operating income, an increase of $9 million from the previous quarter [23] - The company experienced a 2% growth in policies in force (PIF) during the fourth quarter, contrasting with the typical seasonal decline [18] Market Data and Key Metrics Changes - The California market is experiencing pricing disruption due to regulatory changes and inflation, leading to increased consumer shopping activity [36] - Florida and Texas markets are moving towards normalcy, with Florida showing profitable growth and Texas being characterized as a traditionally soft market [37][104] - The company expects continued strong profitability in the specialty auto market, driven by competitive advantages [22] Company Strategy and Development Direction - The company aims to capitalize on competitive advantages in a hard market to achieve better underwriting profitability and growth rates [10] - There is a focus on diversifying the business mix away from California, which currently represents about 51% of overall business [124][128] - The company plans to continue returning capital to shareholders while prioritizing organic growth opportunities [57][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial benefits from competitive advantages in the hard market continuing [13] - The company anticipates robust growth trends in the specialty auto buying season entering 2025 [18] - Management noted that the recent California wildfires are not expected to have a meaningful impact on financials [15] Other Important Information - The company repurchased $14 million of common stock and increased its quarterly dividend by $0.01 to $0.32 [29] - The company plans to retire $450 million of debt, which will strengthen its balance sheet [30] Q&A Session Summary Question: Impact of California fires on auto business - Management indicated no substantive change in business due to the fires, with consistent sales and retention [48][49] Question: Return of seasonality in production and loss ratios - Management acknowledged that some return to seasonality is expected but could not provide precise forecasts [52][53] Question: Share repurchase strategy for 2025 - Management stated that organic growth is the primary focus, with opportunistic share repurchases when the stock is undervalued [58][60] Question: California auto premium increase from minimum limits - Management confirmed a 30% increase in minimum limit policies, which represent over 90% of California policies, but do not expect a material impact on margins [65][70] Question: Adverse development on commercial auto line - Management clarified that their commercial auto book is performing well, with only one underwriting loss in the last 20 quarters [75][78] Question: Future diversification away from California - Management highlighted ongoing efforts to diversify the business mix, with growth rates outside California exceeding those within [125][128]